ECTEL’s Universal Service Activities

Towards Bridging the Rural Urban Divide

Purpose of Presentation

To outline the activities undertaken by ECTEL in relation to Universal Service over the last few years as a means of providing the background to initiatives currently being undertaken in the Member States

Principles of Universal Service Funds

Facilitating extending basic services

Providing subsidies to providers

Closing gaps

Inclusion of “marginal” communities – geographic, economic, social, institutional

Background: Aspects of ECTEL Treaty Relating to Universal Service

ARTICLE 4 - Purposes of ECTEL

The major purposes of ECTEL shall be to promote-:

(c) a universal service, so as to ensure the widest possible access to telecommunications at an affordable rate by the people of the Contracting States and to enable the people of the Contracting States to share in the freedom to communicate over an efficient and modern telecommunications network;

Treaty – Other Related Purposes of ECTEL

To promote:(g) the introduction of advanced

telecommunications technologies and anincreased range of services in the Contracting

States;

(h) increased penetration of telecommunications in the Contracting States;

ECTEL Treaty

ARTICLE 5 -Functions and Powers of ECTEL

1. ECTEL's functions are to —

(p) advise Contracting States on the management of the Universal Service

Fund and make recommendations on applications for disbursements from

these Funds;

ECTEL Treaty

ARTICLE 12 - Universal Service Fund

1. Each Contracting State agrees to establish a Fund, within its jurisdiction , to be known as the Universal Service Fund for the purpose of promoting the widest possible access to telecommunications at an affordable cost to the people of the Contracting States.

ECTEL Treaty

ARTICLE 12 - Universal Service Fund

2. The revenues of the Fund shall consist of payments made by individual licencees direct to the Fund in accordance with conditions of their licences requiring contributions to promote universal service.

3. Contracting States shall manage the Universal Service Fund taking into account the recommendations of ECTEL

Telecoms Acts

Sections 43 to 45 of the Acts address Universal Service

Section 43: Universal Service Obligations are addressed through Licences

Section 44: provides for establishment and management of USF and issuance of the Order governing contributions to the Fund

Section 45: Provides for regulations to govern the computation of “compensation” to service providers

TICT Project

COMPONENT 2 - Universal Access

The objective of this component is to review current universal access policy, create related guidelines, and provide financial support to establish a Universal Service Fund (USF).

TICT Project

Subcomponent 2.1 - Universal Service Guidelines:

This subcomponent will establish unified policy, strategy, and implementing guidelines that will help ensure the spread of advanced telecommunications infrastructure to communities and public institutions in the region.

It will assist in preparing a comprehensive consultation paper to define Universal Service Guidelines (USG) for improving access to information and telecommunications services through a USF, as well as drafting regulations that would address the management of the Fund and Universal Service Obligations.

TICT Project

Subcomponent 2.2 - Implementation Support: The objective of this subcomponent is to provide

skilled support to ECTEL and the NTRCs to implement the USF regulations, policy and

operating procedures to be defined under subcomponent 2.1.

TICT Project

Subcomponent 2.3 - Support for Universal Service Fund:

The objective o f this subcomponent is to establish and provide a one-time subsidy to the USF that will stimulate private investment in expanding broadband connectivity and access to advanced ICT for under-served communities and public institutions.

Universal Service Regulations Public Consultations on Draft Regs - Oct 2006

Regional Workshop on Universal Service – Feb 2007

Public Consultations on Revised Draft Regs – Apr/may 2007

Regional Workshop involving AGs Chambers – Jun 2007

Draft Regs approved by the ECTEL Board of

Directors - Sept 2007

Regulations approved by Council - October 2007 and forwarded to Member States for promulgation

By March 2009 promulgation by SKB and SVG only

Universal Service Guidelines

Aspects of Guidelines discussed at Regional workshop – Feb 2007

Circulated for Public Consultation – Dec 2007 – Feb 2008

Approved by ECTEL Board – Apr 2008

Guidelines approved at Special Council Meeting - July 2008 and submitted to NTRCs

Memoranda of Understanding

During 2008 and 2009 Memoranda of

Understanding (MOUs) between the NTRCs and ECTEL on arrangements for implementation of universal service projects using the funds from the TICT Project were discussed and signed by all countries except SVG

Solicitation Letters to Service Providers

Some initial ideas and proposals submitted by the licensed service providers and other ICT interests

Two prominent ideas were CAPs and Mobile Cellular Base Stations – expanding basic services in voice and internet

The situation suggested that, at the time, service providers were either unable or unwilling to prepare adequate project proposals.

Promotional Activities Promotional activities were required in the

Member States to: create a greater level of interest in the Universal

Service projects in general; encourage service providers and other business

interest to participate in the upcoming bidding processes;

obtain information on local conditions – to develop the projects; prepare the bid documents; to make the projects and bidding process attractive to local businesses;

Bidding Documents

Bidding Documents for DOM CAPs Project started completed, published and bids submitted.

Bid Documents published in Grenada –

opening in May

Work on SVG Documents complete.

SLU and SKN projects being developed

Closing Observations Introduction of Universal Service took longer

than planned/expected – potential drawbacks as a strategy to bridge divide

It has been a learning exercise for ECTEL and NTRCs – guidelines must balance global and local benchmarks/standards

Limited initial interest from service providers – new small responsive providers needed

High level of interest from political directorate – critical support to bridge divide

Many Challenges, which are likely to continue

THANK YOU